Digital Gift Cards Come Into Their Own As Holiday Promotions Spur Sales, ‘Self-Giving’
Dec. 3, 2013
By John Stewart

Only a few years old, digital gift cards are soaring in popularity as U.S. consumers head into the heart of the holiday shopping season. Total loads on the products will reach $1.3 billion for November and December, a nearly four-fold increase from the same two-month stretch last year, according to a forecast from Maynard, Mass.-based Mercator Advisory Group, which follows the prepaid market.

As in prior years, the online-shopping frenzy unleashed on Cyber Monday, the Monday following Thanksgiving, has touched off what is likely to be the year’s biggest buying season for digital cards. In part, this is because of a late Thanksgiving this year. “It’s going to be Cyber Month because of the condensed holiday season” between Cyber Monday and Christmas, says Tom Niedbalski, senior vice president of business and client development for Transaction Wireless, a San Diego company that produces plastic and virtual gift cards for retail clients. “More and more people are going to be shopping online.”

Other companies looking to take advantage of digital cards’ popularity include PayPal Inc., which on Monday announced its Digital Gifts Store, an e-commerce page that allows users to buy digital gift cards issued by merchants that accept PayPal. Users can buy the cards from the store by entering their PayPal credentials. The first merchant is Apple Inc.’s iTunes store.

Transaction Wireless doesn’t release figures, but Niedbalski says the company saw “triple-digit increases” in digital-card sales on Monday compared to Cyber Monday in 2012. This is largely owing to promotions merchants have started running, including offers of as much as $1 in cash for every $5 loaded on a gift card. Applebee’s, a restaurant chain and a Transaction Wireless client, offers a $10 digital bonus card for every $50 digital card purchased, for example. Another client, California Pizza Kitchen, offers a $20 digital bonus card when customers buy a $100 digital or plastic gift card.

Niedbalski estimates that digital cards now account for about 60% of gift cards sold by clients in the business-to-consumer market. “Everyone wants to get into digital because of the cost savings and the sex appeal,” he tells Digital Transactions News. “Once they go digital, plastic becomes a minority.”

Digital gift cards can be purchased online and sent via email to recipients, who can redeem them by scanning quick-response (QR) codes or by printing them out. They are convenient for consumers who don’t want to bother with postage and waiting times for fulfillment, and they are generally less costly to fulfill for businesses. They are especially useful for last-minute shoppers who run out of time before Christmas. “That week before Christmas, virtual gift cards become extremely popular,” Niedbalski says.

Now observers are reporting that digital cards, while still associated with the holiday season, are becoming less seasonal. A few years ago, “virtual cards were the new thing, the province of techies, then they started to get adopted by everybody,” says Ben Jackson, a senior analyst at Mercator. Jackson credits the success of the Starbucks gift card for making the product more of a year-round affair.

Experts are also noticing that many more consumers are buying the cards for themselves, or at any rate having them sent to themselves. Niedbalski says this could be the result of the cash offers and other promotions, which buyers want to pocket for themselves. “Customers are viewing [virtual gift cards] as a Groupon, buying them and sending them to themselves,” he says.

During times when merchants aren’t running promotions, about 20% of digital card orders are fulfilled to the buyer, according to Transaction Wireless’s records. But during promotional periods the cards are bought by and sent to the same person in as many as 70% of all orders, Niedbalski says. The buyer may be pocketing the card or re-gifting it, he says. Or “he could re-gift the card but keep the [promotional] bonus for himself,” he adds.

For the closed-loop gift card market overall, Mercator forecasts total loads will amount to $42.1 billion for November and December, up modestly from $40.5 billion last year. Some 1 billion plastic and digital cards will be sold in this two-month span, Mercator says.

Transaction Wireless (TW), the global leader in providing electronic, mobile, social, and traditional plastic B2C and B2B gift cards via their patented enterprise technology platform, is proud to enable its clients with dynamic marketing and promotional capabilities to help them maximize gift card sales for Cyber Monday and throughout the entire holiday season.

According to the National Retail Federation, gift card spending will reach an all-time high this holiday season. 8 in 10 shoppers will be purchasing a gift card with the average shopper expected to spend an average of $163.16 on gift cards, an increase of 4 percent over last year.

With the total gift card category expected to reach $29.8 billion in sales, it’s no wonder merchants want to maintain the momentum from early holiday sales. TW’s marketing and promotions engine allows the option of creating cart based, card based and rules based promotions such as bonus offers, discounts, promo codes, BOGO offers, bounce backs offers, time based offers and other non-gift card related incentives for purchasing gift cards.

After record breaking results with online gift card promotions last holiday season, more TW clients this year have leveraged this best in class feature to generate excitement and kick start their holiday sales. Some holiday e-gift card promotions from Transaction Wireless clients are highlighted below, but customers should check individual merchant websites for terms and conditions and other specifics about these promotions.

Gift cards are no longer considered ‘thoughtless’ or ‘impersonal’. In fact, gift cards are now the number one requested gift. Through the TW platform, consumers can customize a merchant’s gift card with personal photos, text and even voice recordings.

“Based on the sales data reported by the Wall Street Journal, there was a 30% increase in online sales on Cyber Monday. We are proud to say that TW clients have experienced triple digit sales growth which is a great indicator that consumers love the various promotions offered by TW clients” says Thomas Niedbalski, SVP of Business and Client Development. “Due to the shortened selling season we anticipate more shoppers opting to make their purchases online versus in-store with even higher volumes expected from last minute gift givers. We enjoy partnering with our clients to develop new and innovative ways for them to connect and reward their customers”.

For more information, please visit http://www.transactionwireless.com or contact sales@transactionwireless.com.

About Transaction Wireless

Transaction Wireless (TW) is the leading cloud-based enterprise solution for B2C and B2B gift cards, helping retailers and partners worldwide to evolve their traditional gift card business into electronic, mobile and social commerce platforms. Since 2006, Transaction Wireless has worked with more than 150 brands to offer the most innovative, versatile PCI Level 1 gift cards and integrated marketing capabilities in the industry, allowing clients to quickly deploy, acquire customers, build loyalty, and grow their bottom line. The company is trusted by some of the biggest brands in retail such as American Eagle Outfitters, Applebee’s, Boston Market, Brinker, Buca di Beppo, Buckle, Buffalo Wild Wings, California Pizza Kitchen, The Cheesecake Factory, Chipotle, Comcast, Darden Restaurants, Domino’s Pizza, Fandango, Finish Line, Groupon, Land’s End, Marine Corps Exchange, Overstock.com, Pappas Restaurants, Red Robin, Sport Chalet, and more. Transaction Wireless also provides its scalable technology to a number of partners including Hallmark Business Connections, HP, SVM, SVS and more.

Read the full story at http://www.prweb.com/releases/2013/12/prweb11387191.htm

Transaction Wireless, the pioneer and industry leader of digital gifting, has been awarded its 6th patent.

November 20, 2013, San Diego, California

Transaction Wireless (TW), the leading service provider in electronic, mobile, social, and traditional plastic B2C and B2B gift cards, today announced the issuance of U.S. Patent number 8554655 B2 entitled, Integration of Gift Card Services for Mobile Devices and Social Networking Services. This patent is an extension to Patent US 7953653 B2 which was previously granted to Transaction Wireless in May of 2011 and included 21 claims. This most recent patent secures an additional 54 claims which enhances Transaction Wireless’ innovative technology platform which currently powers digital gifting solutions for some of the world’s largest brands. This patent further secures Transaction Wireless’ process for the purchasing and delivery of gift cards via the rapidly growing social and mobile market channels.

This new patent focuses on 2 areas: social and mobile gifting. The mobile component of this patent includes sending a gift card to a mobile device with all of the Transaction Wireless personalization capabilities such as customizing the gift with a personal photo, voice message, text message and a dynamic marketing message that is driven by the merchant. Additional features include: the ability of a user to perform balance inquiries through SMS text messaging and transfer/re-gift of a digital gift card to another person.

The social aspects of this patent allows Facebook users to leverage specific Facebook features including friends lists, photo albums and Facebook wall posts; to send gift cards to friends and family members.

This patent increases the Transaction Wireless patent portfolio to 6 granted patents. Basil Abifaker, Founder, President and Chief Operations Officer of Transaction Wireless states “this patent adds to the comprehensive and extensive portfolio of patents held by Transaction Wireless in the stored value and digital gifting market”. He added, “With the addition of this patent to our patent portfolio, Transaction Wireless excels as the leader with more patents and coverage than any other company in the digital gifting space”. Furthermore, “Transaction Wireless anticipates more patents to be granted which will continue to shape the landscape for the digital gift card market”.

Thomas Niedbalski, SVP Business Development of Transaction Wireless stated that, “We believe in our technology and feel our patents are a strong differentiator in the market place. There is no other company in this space that can compete with our patent portfolio. Our clients can trust and feel confident knowing that they have selected the right partner”.

For more information, please visit http://www.transactionwireless.com or contact sales@transactionwireless.com.
About Transaction Wireless

Transaction Wireless (TW) is the leading cloud-based enterprise solution for B2C and B2B gift cards, helping retailers and partners worldwide to evolve their traditional gift card business into electronic, mobile and social commerce platforms. Since 2006, Transaction Wireless has worked with more than 150 brands to offer the most innovative, versatile PCI Level 1 gift cards and integrated marketing capabilities in the industry, allowing clients to quickly deploy, acquire customers, build loyalty, and grow their bottom line. The company is trusted by some of the biggest brands in retail such as American Eagle Outfitters, Applebee’s, Boston Market, Brinker, Buca di Beppo, Buckle, Buffalo Wild Wings, California Pizza Kitchen, The Cheesecake Factory. Chipotle, Comcast, Darden Restaurants, Domino’s Pizza, Fandango, Finish Line, Groupon, Lands End, Marine Corps Exchange, Overstock.com, Pappas Restaurants, Red Robin, Sport Chalet, and more. Transaction Wireless also provides its scalable technology to a number of partners including Hallmark Business Connections, HP, SVM, SVS and more.

We’re proud to announce the Socaltech 50, our list of the 50, up-and-coming people in Southern California’s technology ecosystem. Getting to this list was not easy: we received over 700 nominations for people to be considered on the list, and it took a lot of work by our selection committee to whittle down the list to the finalists.

Transaction Wireless (TW), a leading service provider in electronic, mobile, social, and traditional B2C and B2B gift cards, announced recently a strategic partnership with Ceridian Stored Value Solutions (SVS), a leading global prepaid provider.

After a rigorous search, SVS selected TW as their ecommerce solution and partner as part of their overall digital gift card strategy. SVS intends to white label the comprehensive platform to offer their clients a full service gift card platform with integrated reporting and statements and ongoing support for the continued growth of their programs. By partnering with TW, SVS will have its own proprietary instance for the TW software enabling SVS to continue to provide clients with direct implementation support and ongoing service.

“This is an exciting opportunity for Transaction Wireless as we continue to expand our domestic and global presence through OEM agreements with strategic third parties who can leverage our best in class platform”, says Thomas Niedbalski, SVP of Business Development at Transaction Wireless.

Transaction Wireless is Awarded the 2013 Ace Award from the Incentive Gift Card Council at the Incentive Marketing Association’s Annual Summit

Transaction Wireless is honored with the 2013 Ace Award

San Diego, Calfornia (PRWEB) August 21, 2013

Transaction Wireless, a leading service provider in electronic, mobile, social, and traditional B2C and B2B gift cards was presented with the coveted ACE Award for it’s innovative B2B Solution by The Incentive Gift Card Council (IGCC), a Strategic Industry Group within the Incentive Marketing Association (IMA), at this year’s annual IMA Summit held in Denver,

The ACE Award honors and recognizes excellence in gift card programs that provide innovative uses of prepaid cards in the business to business category. The Transaction Wireless B2B Solutionis an automated and intuitive web interface that allows TW clients to directly provide plastic, email and mobile gift cards to third party businesses, incentive companies, distributers, HR departments, etc.; looking to seamlessly distribute them for customer/employee incentives, loyalty rewards, acquisition programs, promotions and more. It includes an electronic application to automate registration of potential B2B customers which then feeds into our robust backend portal for account review and setup which takes seconds to complete. Once the account is approved and setup, the process is truly self service and the new B2B customer can log into the account 24/7.

TwoSmiles by HP was recently featured on a special Father’s Day episode of the Rachael Ray show, including details on how the greeting and gift card can be created, purchased and printed directly from home. The audience was also gifted with $50 SpaFinder Wellness gift cards powered by Transaction Wireless. To view the clip, visit here.

Transaction Wireless provides virtual gift cards for new HP program. By combining the personalization that a greeting card provides, with the speed, flexibility and convenience of an online gift card, Transaction Wireless is able to create a compelling customer experience with TwoSmiles by HP.

Electronic payments industry explodes with new developments in everything from social media marketed gift cards to city-sponsored debit/ID cards.

In another twist, Transaction Wireless Inc., a digital gift card and integrated marketing solutions provider, now has a second U.S. patent for a proprietary feature of its platform allowing consumers to display the Facebook digital gift cards they own and purchase. The second patent builds upon the company’s previously secured patent for social storefronts, which, through the use of an application, gives customers the ability to select from among digital gift card brands as well as upload to and display any gift cards they already own on their Facebook profiles.

Digital gift card and integrated marketing solutions firm Transaction Wireless has partnered with HP to launch TwoSmiles by HP, a unique online greeting card and gift card program. With TwoSmiles by HP, an employer can deliver on-the-spot recognition in the form of personalized greeting cards and gift cards with ease. By choosing from a variety of greeting card designs and selecting a popular merchant gift card, an employer can personalize a specific greeting and denomination, and instantly purchase and print a TwoSmiles card to give to an employee.

Transaction Wireless’ technology is integrated into TwoSmiles to provide access to a variety of digital gift cards. Transaction Wireless, a global leader in digital gift cards and integrated marketing solutions, is working with HP as a partner for TwoSmiles —a unique offering that combines greeting and gift cards ideal for any holiday or special occasion. Customers can choose from a variety of greeting card designs, select a popular merchant gift card, personalize the greeting and denomination, and immediately purchase and print the TwoSmiles card from the convenience of home.

As with all new payment technologies, mobile wallets will only be successful when consumers in large numbers adopt them. Thomas Niedbalski Jr., Senior Vice President, Business and Client Development at Transaction Wireless, said prominent mobile wallet aggregators have garnered only mixed results because consumers are simply not using them.

The gift card, the bedrock of the prepaid card world, is increasingly taking on digital form, cutting costs for merchants and adding to convenience for mobile phone-wielding customers.

Indeed, Tom Niedbalski, senior vice president of business development for San Diego-based Transaction Wireless, a service provider for virtual gift cards, says he was surprised at the broad range of retailers interested in the cards.

“We have a lot of interest coming from segments I had not expected to see.”

That could change soon. Companies that specialize in digital cards say they are about to tap a gold mine.

We’ve found that no one’s waiting any more, everyone’s trying to figure out how to get into this space,” says Tom Niedbalski, senior vice president of business development at Transaction Wireless, a San Diego company that provides digital gift cards for chains including Buffalo Wild Wings, Finish Line, and Land’s End.

The company added 100 retail brands over the past year and now processes for 150, Niedbalski says. Since Transaction Wireless also sells plastic gift cards, it has racked consumer preference. “We’re seeing at least 60% gravitating to digital cards,” says Niedbalski.

As expected, Monday — Christmas Eve — was the biggest day of the year for digital gift card purchases, according to Transaction Wireless, a provider of multichannel digital gift card services. But Christmas Day turned out to be the second biggest, the company said.

Year-over-year sales growth in digital gift cards on Christmas Eve and Day were in the high double-digit percentage range, says Thomas Niedbalski, senior vice president of business development for Transaction Wireless. The trend bodes well for 2013, he adds.

“People who have received and experienced digital gift cards for the first time this year are also more likely to become a purchaser of digital gift cards in the future based on their new and memorable experience,” he said.

Research firm ComScore says holiday season e-commerce sales, as of Friday, were up 16% over the year-earlier period. U.S. online retail sales were $38.7 billion for the Nov. 1-Dec. 21 period, vs. $33.5 billion a year earlier. It had forecast a 17% jump for November-December.

Gift Cards
Conveniently, the most requested gift this season—favored by 60% of consumers—is also among the easiest to buy: It’s the gift card, a range of which is probably available at your local supermarket and drugstore. The popularity of gift cards shouldn’t come as a surprise considering the rise of another holiday trend: self-gifting. In both cases, what we see is that people increasingly want to cut to the chase and just pick out something for themselves.

Many retailers and restaurants make it especially tempting to buy gift cards at this time of year with the advent of special bonus cards awarded with each purchase—think $5 extra for every $25 spent. Most of these “cards” can be purchased in digital versions too, meaning it’s not even necessary to leave the house. Unsurprisingly, Transaction Wireless predicted that December 24 would be the biggest day of the year for e-gift card sales. The possibilities include Fandango, Amazon, Starbucks, Sony, and more—with the latter offering a $20 bonus with the purchase of a $100 digital card.

Stockholm-based Wrapp lets people send gift cards to their Facebook friends. News about the gifts can be shared on their Facebook timelines, and friends can redeem their gifts from a smartphone or printout from a computer.

U.S. consumers will spend $110 billion on gift cards this year, with $3 billion coming from electronic gift cards, according to CEB TowerGroup. The research firm predicts that total gift card purchases will top $130 billion in 2015, with $16 billion coming from electronic gifting.

Monday will be the biggest day of the year for digital gift card purchases, according to Transaction Wireless, a provider of multichannel digital gift card services.

“As expected, we’ve already seen an uptick in digital gift card sales in the days leading up to Christmas, which is also a great indicator that Dec. 24 will be the peak of the season,” Thomas Niedbalski, senior vice president of business and client development for Transaction Wireless, said in a press release Thursday.

Last Minute Shoppers Coupled with Digital Consumers Contribute to Large Sales Day

San Diego, Calif. (PRWEB) December 20, 2012 After a record-breaking Cyber Monday, Transaction Wireless, global leader in multi-channel digital gift cards and integrated marketing solutions, expects December 24, 2012 will be the biggest day of the year for digital gift card sales. With more merchants offering digital gift card options delivered via mobile, email and Facebook, consumers have more choices to extend their holiday shopping down ‘til the very last minute. Combine these new options with consumers adopting more digital lifestyles, and the result is Christmas Eve becomes a large shopping day for digital gift cards.

“Trends from our previous year’s digital gift card sales during the fourth quarter holidays and growth in popularity, have helped us predict that December 24 will be the biggest day for sales,” says Thomas Niedbalski, Senior Vice President of Business and Client Development, Transaction Wireless. “As expected, we’ve already seen an uptick in digital gift card sales in the days leading up to Christmas, which is also a great indicator that December 24 will be the peak of the season. One of the reasons is that last minute shoppers find digital gift cards as the perfect gift and convenient for someone they may have forgotten on their list, leading them to purchase on that specific day.”

The old way to give a gift card: Pluck a piece of plastic from a rack at the supermarket, wrap it and stick it under the tree. The new way to give a gift card: Surprise the recipient with a gift via text message, Facebook or a festive e-card.

Electronic gift cards have grown in popularity because they’re quick, can be purchased with a click and are delivered instantly — a lifesaver for procrastinators.

However, it used to be that the only way to give an electronic gift card was via a plain email message. That’s no longer the case. Here are five cooler ways to give electronic gift cards:

1) Social giving: Now that Facebook is the go-to way to wish someone a happy birthday, it’s no surprise that gift giving via social media is next.

“It’s really become a big hit,” says Thomas Niedbalski, senior vice president of business and client development for Transaction Wireless, which works with retailers to offer gift cards via social media, mobile devices and plastic.

That could change soon. Companies that specialize in digital cards say they are about to tap a gold mine. “We’ve found that no one’s waiting any more, everyone’s trying to figure out how to get into this space,” says Tom Niedbalski, senior vice president of business development at Transaction Wireless, a San Diego company that provides digital gift cards for chains including Buffalo Wild Wings, Finish Line, and Land’s End. The company added 100 retail brands over the past year and now processes for 150, Niedbalski says. Since Transaction Wireless also sells plastic gift cards, it has tracked consumer preference. “We’re seeing at least 60% gravitating to digital cards,” says Niedbalski.

Digital gift cards, says Transaction Wireless, are much more convenient for holiday shoppers than traditional gifts or plastic gift cards. Last-minute shoppers can purchase and send gift cards easily, without waiting in lines at a store, and gift card senders can also schedule the cards to be delivered at a specific time and day. Recipients of digital gift cards can also access their gifts directly from their smartphones, so they need not worry about losing their plastic gift cards or forgetting to bring them to the store for redemption.

According to a recent report by the National Retail Federation, gift cards are set to be the season’s most popular gift, with 59.8 percent of consumers putting it at the top of their wish lists.

Gift cards will reign supreme again as the No. 1 item consumers want to receive this holiday season, and sales of gift cards are projected to surge in all categories, driving a record 1 billion gift cards sold during November and December.

Consumers will load a total of $43.2 billion in funds onto closed-loop gift cards during the final two months of the year, up 13.7 percent from $38 billion spent last year, according to a new report from Mercator Advisory Group. In-store card malls will drive $7.51 billion of gift card sales this year, while closed-loop virtual cards will account for about $330 million spent, the report said.

If you’ve been to a sporting event or concert in recent years, heck, if you’ve ever had a Blackberry, you know how simple it is to scan a barcode from a smartphone. So, it should come as no surprise that mobile gift cards appear to be the next big thing in gift giving.

Much as digital gift cards – those delivered via e-mail and redeemable on retailers’ websites – have risen in prominence along with the popularity of online shopping and are now used by 28% of retailers, according to a study by Transaction Wireless, advancements in mobile phone and point-of-sale technology have paved the way for more extensive adoption of mobile gift cards. While only 15% of retailers currently offer them, with Starbucks being one of the most notable pioneers, that number is expected to surge to 61% within three years’ time.

Mobile gift cards were hotter than ever in 2012 and the trend shows no sign of slowing down in the new year. The technology behind mobile gift cards is becoming ever more advanced: instant delivery, advanced tracking capabilities for program administrators, and endlessly customizable cards are just some of the distinct advantages that mobile gift cards offer.

Mobile gift cards are also far more secure than traditional plastic cards, since there’s no risk of a mobile card being lost by the recipient, or stolen. Still not convinced? Redemption rates tend to be higher with mobile delivery of gift cards when compared to traditional plastic cards.

On-Demand Activation
In July, San Diego-based Transaction Wireless introduced a system that enables digital gift cards to be activated only when the intended recipient clicks on a pre-specified link or button. Without the link, the gift card holds no monetary value, which means that liability, risk, and the potential for fraud are dramatically reduced for both retailers and consumers.

Transaction Wireless, a provider of digital gift card solutions, and SVM Europe, a provider of gift cards and prepaid cards for businesses, have expanded their European customer portfolio with the following brands:

HMV – the UK and Ireland’s leading entertainment brand

Hotel Voucher Shop – one of the UK’s leading hotel booking providers

Naked Wines – a group of over 100,000 wine drinkers that sponsor 38 independent wine makers

The First Club – is the only digital rewards platform that offers instant, branded rewards downloadable to almost any device worldwide

Ticketmaster – the global event ticketing leader and one of the world’s top five eCommerce sites, with over 26 million monthly unique visitors

Travelocity Hotel e-gift cards – a leading provider of consumer-direct travel services for the leisure and business traveler

SVM and Transaction Wireless now also offer the ability to deliver international distribution of e-codes for gift cards across multiple territories and currencies. As a result, they say brands will benefit from greater flexibility in how e-codes are purchased, designed and sent, while having the capabilities to connect with consumers through multiple channels such as online, mobile, Facebook and traditional plastic gift cards.

In a recent survey, roughly 15% of U.S. retailers offer digital gift cards that are truly mobile—meaning they can be used immediately for a purchase via smartphone. A major growth spurt for mobile gift cards seems to be in the works. In the same survey, 61% of retailers said they plan on offering such cards in the next three years.

In the near future, it may be time to revisit the term “gift card.” Why? Because increasingly, there won’t be an actual physical card involved. The term “credit” or “gift credit” seems more appropriate when the gift is merely a code representing a dollar value amount at a retail store, sent via text message, Facebook, or e-mail.

Transaction Wireless last week announced a new patented technology that enables digital gift cards to be activated only when the intended recipient clicks on a pre-specified link or button. Without the link, the gift card holds no monetary value, which means that liability, risk, and the potential for fraud are dramatically reduced for both retailers and consumers.

The patented technology involves a closed-loop system where a digital gift card requires the recipient to physically click a specified button or link to initiate the feedback loop and activate, similar to calling a toll-free number to activate a traditional plastic credit card. This verification process is done digitally in order to streamline the process and ensure for an easy and secure activation.

Many retailers appear poised to adopt digital gift cards that consumers can order and redeem using their smartphones. That is the finding from an Aberdeen Group study of 100 retailers that found 61% of the merchants plan to offer mobile gift cards over the next three years.

Consumers can order digital gift cards from retailers’ e-commerce or m-commerce sites. Transaction Wireless, an online gift card company that commissioned the Aberdeen Group study, says recipients receive their digital gift cards via a link sent to their e-mail addresses or via text if a mobile number is provided. Mobile gift cards may present a bar code displayed on a smartphone’s screen that retailers can scan at the point of sale, if they have optical scanning equipment. Or retailers can enter a numeric code also displayed as part of the gift card’s bar code, says Transaction Wireless.

Research released by Transaction Wireless and Aberdeen Group, which examined the benefits of mobile and digital gifting and emerging trends in mobile and social frontiers, found a shift toward digital gifting.

In fact, online gift cards have risen to prominence in the past few years and now are used by nearly one-third (28%) of retailers. More than half — 61% — plan to use mobile gift cards, and 43% of customers prefer to use the mobile medium for gift cards.

Transaction Wireless, the leading provider of digital gift card solutions, today announced the launch of its latest white paper, entitled “Digital Gift Cards: A Growing Trend with Mobile and Social as the New Frontiers.” The white paper – which features a study conducted at the end of 2011 and was commissioned with Aberdeen Group, a Harte-Hanks Company – offers detailed research and insights into the digital gifting realm, including:

Research released Thursday by Transaction Wireless and Aberdeen Group, which examined the benefits of mobile and digital gifting and emerging trends in mobile and social frontiers, found a shift toward digital gifting.

In fact, online gift cards have risen to prominence in the past few years and are now used by nearly a third (28%) of retailers. More than half – 61% – plan to use mobile gift cards, and 43% of customers prefer to use the mobile medium for gift cards.

New patented gift card activation technology from Transaction Wireless to reduce risk of fraud for retailers and consumers

Transaction Wireless, the leading provider of digital gift card solutions, today announces it has been awarded its third patent, United States Patent No. 8200544, for innovation in closed loop digital gift cards. The new patented technology enables digital gift cards to be activated only when the intended recipient clicks on a pre-specified link or button, otherwise the gift card holds no monetary value. In doing so, liability, risk and fraud is dramatically reduced for both retailers as well as consumers. This is extremely useful for large B2B distributions where promotional cards are distributed in bulk to a large number of recipients who may not be expecting the cards.

Similar to calling a toll free number to activate a traditional plastic credit card, Transaction Wireless’ latest patented technology involves a closed-loop system where a digital gift card requires the recipient to physically click a specified button or link to initiate the feedback loop and activate. This is done digitally in order to streamline the process and ensure for an easy and secure activation.

The e-commerce industry has broadened in scope in recent years. Originally confined to transaction activity between large financial institutions, e-commerce then expanded in the 1970s and 1980s to include what was termed “EDI” (Electronic Data Interchange) between large companies who could afford the dedicated computing power and related IT department.

Since the rise of the Internet, the definition of e-commerce it has expanded to include Internet purchasing, mobile, and, more recently, social and peer-to-peer financial activity. Read more »

For incentive programs, print catalogs led the way more than a decade ago. Now, as egifting has come to the fore, all the talk is about mobile and social. Smart retailers and catalog merchants are leveraging the synergy among mobile and social gifting and online catalogs.

Coupled with virtual gift cards, electronic catalogs clearly are more cost effective than print ones. They make it easy for program managers to expand award choices yet simplify the selection process and help save on merchandising costs. Participants benefit, too, from more immediate award opportunities and greater choices in both reward types and delivery methods.

It is no surprise that gift cards have remained one of the most popular gift items among consumers. According to Michael Hursta, Vice President of payment transaction firm First Data Prepaid Services, the gift card market is growing at least as fast as the general consumer spending market. The latest trend in gift cards, the virtual gift card (or “eGift” card) gained momentum in 2011 and is positioned to continue its growth over the next few years. While this growth has primarily been focused in B2C, the stage has been set for the same growth experience in B2B due to the benefits of instant delivery, promotional opportunities and tracking capabilities.

Transaction Wireless, the San Diego, CA-based provider of digital gift card solutions, has unveiled a new B2B online storefront. The new portal allows retailers to provide business and incentive purchasers to order and deliver bulk and single-issue digital and traditional plastic gift cards.

Many of Transaction Wireless’ current retail clients will be implementing the B2B storefront as part of their gift card offering beginning this quarter. Both purchasers and retailers can track orders, manage delivery, run reports, and access customer service tools via the new B2B storefront. In addition, retailers are able to manage multiple B2B accounts with ease and eliminate the complexity and manual processes associated with bulk gift card orders.

Transaction Wireless, the leading provider of digital gift card solutions, today announced that it has released its B2B Storefront, which allows retailers to provide business and incentive purchasers with an online store to order and deliver bulk and single issue digital and traditional plastic gift cards. The B2B Storefront will automate registration and related back office management and support required for mass distribution of gift cards in the incentive marketplace.

Many of Transaction Wireless’ current retail clients will be implementing the B2B Storefront as part of their gift card offering beginning in Q2. The B2B Storefront makes it quick and easy for retailers to offer B2B purchasers of any size a store to buy digital and traditional plastic gift cards online. Gift cards are simple to buy via the online storefront that sits on a retailer’s website, with an intuitive user interface that makes the whole transaction easy to understand. Both purchasers and retailers can track orders, manage delivery, run reports, and access customer service tools. In addition, retailers are able to manage multiple B2B accounts with ease and eliminate the complexity and manual processes associated with bulk gift card orders.

Las Vegas — Digital gift card solution-provider Transaction Wireless said Tuesday that Applebee’s expanded its offering with the Transaction Wireless platform to provide its sports fans with personalized digital gift cards as part of its “Catch the Game” invite application on Facebook.

The app is timed to launch in concert with the March Madness NCAA basketball series. Basketball fans visit the Applebee’s Facebook page and schedule a viewing party at any Applebee’s location to invite family and friends to attend.

Domino’s Pizza has chosen Transaction Wireless, a provider of digital gift card solutions, to enhance its gift card program to offer both eGift and traditional plastic gift cards on the Domino’s website.

Gift cards can be personalized with an image, audio and text to be delivered through email, mobile and mail, and can incorporate social media with Facebook.

Welcome to the new world order of customer loyalty and incentive programs where virtual prepaid gift cards meet mobile wallet applications and geolocation technology is thrown in for good measure.There’s nothing new about prepaid cards playing a central role in customer loyalty programs. For many years, consumers could trade in their retail reward points for gift cards or prepaid Visa cards.
But now that so many consumers are walking around with smartphones and mobile web access in their pockets, the possibilities for new customer loyalty offerings is endless. Over time, customers will be managing their rewards programs online, trading in these credits for prepaid cards that will be sent by email or SMS, and eventually retailers will do direct marketing via SMS.

Transaction Wireless, the leading provider of digital gift card solutions, today announced that it has released its B2B Storefront, which allows retailers to provide business and incentive purchasers with an online store to order and deliver bulk and single issue digital and traditional plastic gift cards.

The B2B Storefront will automate registration and related back office management and support required for mass distribution of gift cards in the incentive marketplace.

Many of Transaction Wireless’ current retail clients will be implementing the B2B Storefront as part of their gift card offering beginning in Q2.

The holiday season has always been a good time to recognize employees and thank clients for their business. Research studies show that the majority of people value recognition and rewards even more than money. In the past, the business to business (B2B) rewards and incentive space was dominated by merchandise such as sports gear, electronics, and vacation packages.

“But the market has evolved towards gift cards as the incentive of choice,” said Lori Breitzke, president, E&S Consulting. “In fact, gift cards are regularly used as rewards in the workplace, setting a positive tone and note of gratitude for the current year and into the next.”

Sport Chalet is enhancing its gift card offerings by adding personalization options of images, text and audio messages. The personalization can be part of an electronic gift card itself, or be delivered with the recipient notification for a plastic gift card.

The retailer can also use the notifications, which are powered by the Transaction Wireless cloud-based gift card platform, to deliver timely digital promotional campaigns via e-mail or to consumers’ mobile devices.

Sport Chalet plastic and e-gift cards make a great last minute holiday gift for the passionate sports and outdoors enthusiast and can be purchased conveniently on its online site or Facebook page. Both the plastic and e-gift cards have email or mobile notification for intended recipients that can be scheduled or delivered in real time. The e-cards can be personalized with an image, text and audio message, and the available notification that comes with plastic gift cards is also customizable in the same way.

Sport Chalet plastic and e-gift cards can be purchased on its online site or Facebook page. Both the plastic and e-gift cards have email or mobile notification for intended recipients that can be scheduled or delivered in real time. The e-cards can be personalized with an image, text and audio message, and the available notification that comes with plastic gift cards is also customizable in the same way.

Red Robin International, a casual dining restaurant chain focused on serving an innovative selection of high-quality gourmet burgers in a family-friendly atmosphere, has selected Transaction Wireless to power its B2B and B2C gift card program and promotional activities around the holiday season.

With Transaction Wireless, Red Robin will be able to offer its customers last minute e-Gift Cards that can be purchased on the Red Robin website or on its mobile gift card storefront and personalized with text, images and voice message and sent at a click of a button over email and mobile.

Transaction Wireless, a provider of digital gift card solutions, as teamed with Finish Line, a retailer of athletic shoes, apparel and accessories, to power e-gift cards on the Finish Line website, Facebook page and mobile storefront.

The gift cards can be personalized with a photo and unique text and audio messages, making it a customized gift for any sports enthusiast, according to a company press release. Additionally, e-gift cards have no expiration date or fees and can be redeemed online at FinishLine.com or in-store at any Finish Line location nationwide.

Transaction Wireless, the San Diego, CA-based provider of digital gift card solutions, has been tapped by Finish Line, a premium retailer of athletic shoes, apparel, and accessories, to power the egift cards on Finish Line’s website, Facebook page, and mobile storefront.

The ecards can be personalized with photos and unique text and audio messages, and they have no expiration dates or fees. They can be redeemed online at www.finishline.com or at any of the 647 Finish Line locations nationwide.

Fast-casual restaurant Buffalo Wild Wings is furthering its plunge into mobile by using mobile advertising and gift cards.

Buffalo Wild Wings is running mobile ads that tie in with social and location-based services for a football season-themed campaign. The company is also using digital gift cards that are powered with mobile solution Transaction Wireless.

Lazy and/or last minute shopper? To give these you don’t need to leave the couch

Last-minute couch-potato shoppers rejoice! It’s become a whole lot easier to send gift cards almost instantly. Six big-name retailers and one major credit card issuer have rolled out e-gift cards, according to Bankrate.com’s 2011 Gift Card Survey, a nod to the growing popularity of online shopping.

“Retailers are adding them in droves,” says Rebekka Rea, executive director at the Retail Gift Card Association. “It’s definitely something that if retailers don’t have now, they are behind.”

Starbucks, Best Buy, Gap Inc., Pizza Hut, Staples, Overstock.com and American Express all added a virtual version of their gift cards since last year’s survey. Consumers simply buy the e-cards online and send the gift card directly to the lucky recipient’s inbox. No worrying about shipping a plastic card in time. And no getting out of your pajamas.

“We added the (e-gift card) option because we increasingly see our customers access our brand through mobile and online means,” said Pizza Hut spokesman Chris Fuller in an email to Bankrate.

Still, the e-gift card market is small. Ben Jackson, a senior analyst at Mercator Advisory Group, says that e-gift cards made up about 4 percent of the $97.2 billion gift cards brought in last year. But he expects the market to continue to grow, even if plastic gift cards stick around.

“There will always be people like me who remember my sister’s birthday is tomorrow and I need to get something to her in Florida,” says Jackson, who is in Massachusetts. “E-gift cards have a future.”

In all, more than half of the cards in Bankrate’s survey were available as e-cards too. Only one retailer, Costco, eliminated its e-card this year.

Cloud-based digital gifting platforms sound complicated, but you get cash fast with no work.

Now that the holiday gift-buying season is about to hit high gear, it might be time to investigate whether the promise of digital gift cards cheaper (for you) and more convenient (for both you and your customers) matches the reality. Cracker Barrel is already on board.

True, the non-digital gift card options you use now might not be particularly costly or burdensome to administer. And this low-tech way works fine. But some operators are wondering if the hands-off nature of digital cards’ customers handle all aspects of the transactions online, a digital gift card solutions provider handles the back endâ€”might make a conversion worthwhile.

That’s the thinking at 604-unit Cracker Barrel.

Guests who count on us for good country cookin’ and genuine Southern hospitality will find the ease of ordering and using our digital gift cards any time they want, any time of day, downright convenient, says Jordan Schneider, the company’s director of digital marketing. And if they’re caught in a pinch and need a gift right then and there, our gift cards can save the day.

In Cracker Barrel’s case, customers go online to purchase cards in denominations as small as $10 and as large as $500. If they want, they can then use their skills to customize the card’s appearance with photos, images and text. Purchasers also specify the date and time of delivery, which is handled via email, Facebook or the recipient’s mobile phone. Tools from the service provider, in this case Transaction Wireless, enable customers to track their gift card status in real time, and purchasers can resend the card if the recipient loses it or deletes it.

To use their gift, recipients simply print out their barcoded gift card and use it to pay their bill at Cracker Barrel. Consumers familiar with e-tickets and airline self-check-ins should have no problem using their card.

Digital gift cards are a natural fit with Cracker Barrel’s tradition of anticipating what our guests want and need, as well as our focus on remaining relevant in our guests’ daily lives, Schneider says.

Buying goods and services online is already a fixture in these customers’ lives, and the social media revolution has made it acceptable, sometimes even preferable, to give and receive gifts via email or other social media platforms. Let’s face it. It’s a lot more convenient to buy and immediately send gift cards via computer or smart phone than it is to go to a restaurant and make the same transaction in person, then mail or deliver the card to the recipient.

Buca di Beppo and California Pizza Kitchen have already followed suit with programs similar to Cracker Barrel’s. Expect to see more e-gift cards, soon.

Mobile gift cards — the “cooler, more sophisticated, and smarter cousin to the gift card,” according to one expert — are simply gift cards consumers can use on their smartphones. They made a big splash in 2011, with retail giant Starbucks leading the way. However, Starbucks isn’t the only retailer letting its customers go mobile, and many, many more will likely jump on board in the near future. Why? Convenience.

This past summer, Doug Schneider, president and CEO of San Diego-based Transaction Wireless, sent a mobile gift card to his son to use in New York City, where he happened to be for his birthday. “On his birthday, he’s walking down the street in New York and presto — there’s the gift card that shows up on his mobile phone with the personalized text message from me,” says Schneider. “He’s actually walking down the street and talking to me, and he walks into American Eagle and he’s able to use it immediately. Then he calls me back to say, ‘Dad, this actually works.’”

The cloud-based digital gifting platform will enable Buca di Beppo, which is owned by Planet Hollywood International, to leverage channels such as email, mobile and Facebook for digital gift card promotions and marketing initiatives.

Buca di Beppo will be deploying Transaction Wireless’s full suite of services. wGiftCard for Buca di Beppo’s B2C digital gifting offerings, wCentive for its B2B programs, and wConnect for its marketing campaigns to power its loyalty and customer incentive programs from a cloud-based digital gifting platform.

“With Transaction Wireless, we will be able to create more effective digital gift card campaigns that enable us to better understand and engage our customers, while providing a fun, more personal and secure way to give digital gift cards this holiday season,” said Kyle Collins, director of interactive marketing for Buca di Beppo.

Mobile gift cards — the “cooler, more sophisticated and smarter cousin to the gift card,” according to one expert — are simply gift cards consumers can use on their smartphones. They made a big splash in 2011, with retail giant Starbucks leading the way. However, Starbucks isn’t the only retailer letting its customers go mobile, and many, many more will likely jump on board in the near future. Why? Convenience.

Cracker Barrel Old Country Store has announced its new digital gift card program, which offers gift card buyers more choices in appearance, denomination and speed of delivery. According to the company, the electronic version of Cracker Barrel’s traditional plastic gift cards lets purchasers add personal messages and images, schedule delivery of the card for a specific day, time and even share it socially with friends through Facebook.

In the past two years, Incentive has been following digital gift cards and several ecard platform providers as they expand in both the consumer and business-to-business markets. One company that is now making a presence is San Diego-based Transaction Wireless. Founded in late 2006, the ecard platform company spent the last several years developing its patented technology and is now gaining traction with retailers and a major B2B card distributor, SVM, as clients.

LEBANON, TN (September 14, 2011) Technology meets nostalgia on new Cracker Barrel Old Country Store digital gift cards, and the company says the result offers gift card buyers more choices in appearance, denomination and speed of delivery. The electronic version of Cracker Barrel’s traditional plastic gift cards lets purchasers add personal messages and images, schedule delivery of the card for a specific day, time and even share it socially with friends through Facebook.

LENEXA, KS, Sep 12, 2011 — The next best thing to online chats with virtual friends about football is hanging out with them in person at your neighborhood Applebee’s, where this fall, you can instantly win great prizes including Applebee’s gift cards while rooting on your favorite team.

Payment Card Industry or PCI Level 1 Certification has been achieved by Transaction Wireless. For the first time, the PCI Data Security Standard or DSS v2.0 has been met by a digital gift card provider. Transactions Wireless’ continued commitment to ensuring the highest level of data security for its customers is reflected with this early compliance. The company’s innovative cloud-based approach to digital gifting has been also endorsed through this certification. An announcement in this regard has been made by the top provider of digital gift card solutions, Transaction Wireless.

Transaction Wireless, a provider of digital gift card solutions, announced it has achieved Payment Card Industry (PCI) Level 1 Compliance. Transaction Wireless is one of the first digital gift card providers to meet the PCI Data Security Standard (DSS) v2.0, which is a part of the latest industry compliance requirements that also incorporate cloud-based platforms.

Transaction Wireless is the first digital gifting platform to be certified on PCI DSS v2.0. The latest standard was created in order to provide greater clarity on requirements, better manage evolving threats, improve merchant flexibility and keep pace with recent changes in industry best practices. Transaction Wireless’ patented digital gifting platform offers B2C and B2B turnkey solutions for retailers and partners with a variety of gift card services including electronic, mobile, social and even traditional plastic. With a PCI Level 1 Certification quickly following Transaction Wireless’ recent patent for gifting on FacebookÂ®, Transaction Wireless continues to lead the industry in security as well as innovation.

SAN DIEGO, Aug. 23, 2011 — Transaction Wireless, the leading provider of digital gift card solutions, today announces it has achieved Payment Card Industry (PCI) Level 1 Certification. Transaction Wireless is one of the first digital gift card providers to meet the PCI Data Security Standard (DSS) v2.0, which is a part of the latest industry compliance requirements that also incorporate cloud-based platforms. Transactions Wireless’ early compliance marks its continued commitment to ensuring the highest level of data security for its customers, as well as endorses its innovative cloud-based approach to digital gifting.

This holiday season, there will be one gift consumers will never see in a store: a mobile gift card.

You now can exchange mobile gift cards via an email or text message on your smartphone. To redeem them, just flash the phone’s screen at the register to pay, or provide a card identification number that can be typed in. There’s no losing track of cards to redeem.

The wireless industry has been talking about the mobile wallet for years, where consumers swipe their cell phones at a retailerâ€™s check out to make a purchase â€” just like they do now with credit cards.Read more »

Now showing on cell phones â€” movie tickets, gift cards, coupons and airline tickets.
Retailers and technology companies nationwide are increasingly making commerce mobile, embracing the cell phone as an electronic replacement for paper coupons or plastic gift cards. Itâ€™s moving the world ever closer toward the â€œmobile wallet,â€ in which most transactions are conducted on wireless phones.Read more »

Springfield-based Bass Pro Shops entered an agreement with San Diego-based Transaction Wireless for the creation of a comprehensive mobile gift card program using Transaction Wireless’ patent-pending wGiftCard technology.

Transaction Wireless will help Bass Pro extend its gift card program, including point-of-sale redemption, personalization, balance checks and a one-on-one marketing campaign, to customers’ cell phones. The program is expected launch in first-quarter 2010, according to a joint news release from the companies. Terms of the agreement were not disclosed.

The wGiftCard platform also will enable Bass Pro customers to personalize their gift cards with customized mobile and e-mail text and video messaging.

“We’ve always been focused on getting to know our customers and reaching them on a personal level,” said Greg Thompson, Bass Pro corporate incentives manager, in the release. “With Transaction Wireless we’re able able toÂ reach our customers in even more relevant ways through the mobile phone.”

Outdoor retailer Bass Pro Shops has tapped mobile commerce and marketing firm Transaction Wireless to create its first mobile gift card program, which will go live in next year’s first quarter.

Bass now offers physical gift cards, which can be purchased in-store or online. When the mobile program launches next year, consumers will be able to customize online gift cards by incorporating personalized text, videos and voice messages. Once they do so, the user enters the recipient’s mobile number and e-mail address, and the digital card will be sent to both mobile and e-mail inboxes. Users will also be able to schedule what date and time the card will be sent.